ABSA Bank and JSE Showcase11 April 2013

• Largest independent electrical distributor in

Sub-Saharan Africa

• Focused on electrical and lighting products

• Supply across all major market segments

• Extensive distribution network across South Africa

Group Overview

Power cablesOverhead line conductors &

equipment

Low voltage products Lighting & lamps

Group at a Glance

ARB Holdings Limited

Corporate Electrical Lighting

Electrical Wholesaling

Proprietary Products

Electrical Wholesaling

• Founded in 1980

• 19 branches across SA (and growing)

• Over 15 000 stock items

• Over 6 000 customers (no customer =>3% of total revenue)

• Well established in industrial, construction, mining, parastatals and public sector

• Annual revenue approaching R2 billion

Geographic Footprint

1980 1988 2000 2002 2003 2004 2008 2009 2010 2011 2012 20130

2

4

6

8

10

12

14

16

18

20

# of Branches

Lighting

• Founded in 1991

• Acquired 60% in January 2012

• Over 4 000 stock items

• Over 1 800 customers

• Well established in retail and domestic sectors

• Owned brand

• SABS mark holder

• Recently introduced pre-packed electrical accessories range

Proprietary Products

ACCC®

Conventional ACSR

Conductor Comparison

Steel Core Composite Core

• Unique, patented technologically advanced products

• Exclusive distribution rights for SADC

Financial Overview

FY2010 FY2011 FY 20120

20,000

40,000

60,000

80,000

100,000

120,000

140,000

97110

128

Operating profit

FY2010 FY2011 FY 20120

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

1 0871 256

1 565

RevenueR’000 R’000

CAGR = 20%pa

CAGR = 15%pa

Financial Overview

FY2010 FY2011 FY 20120

50,000

100,000

150,000

200,000

250,000

300,000

350,000

200 235307

Gross profitCAGR = 24%pa

FY2010 FY2011 FY 201226272829303132333435

29.2 30.634.2

HEPS

R’000

Cents FY2010 FY2011 FY 201217%

18%

19%

20%

18.4%

18.7%

19.6%

Gross profit %

6 Months to 31 December 2012 (excludes acquisition of Elektro Vroomen)

• Revenue

• Gross profit

• Operating profit

• Headline earnings

• Cash generated by operations

• Net asset value

• R1.0 Billion

• R196 million

• R76 million

• R43 million

• R25 million

• R596 million

27%

17%

50%

39%

11%

163%

Ungeared with net cash of R153 million

Interim Results

Share Statistics

Listing particulars

JSE ticker ARH

JSE listing Main BoardElectronic & Electrical Equipment sector

Net asset value / share 254 cents per share

Share price 540 cents per share

Market cap ±ZAR1.3 billion

cents

Dividend Policy

40% of after-tax profits(i.e. 2.5x cover)

ARB share price has outperformed the JSE All

Share, Industrial and Electronic & Electrical

indices over past 4 years

2-Feb-09

13-Apr-09

22-Jun-09

31-Aug-09

9-Nov-0

9

18-Jan-10

29-Mar-

10

7-Jun-10

16-Aug-1

0

25-Oct-

10

3-Jan-11

14-Mar-

11

23-May-

11

1-Aug-1

1

10-Oct-

11

19-Dec-11

27-Feb-12

7-May-

12

16-Jul-1

2

24-Sep-12

3-Dec-

12

11-Feb-13

0

100

200

300

400

500

600

ARH share price

Prospects – South Africa

Market potential(Source: A review of SA’s electricity sector – January 2013 by Research Channel Africa)

– Eskom requires 420 000 tons of new steel pylons over next 10 years – ACCC can reduce this significantly

– DSM, RMR and 49M – all promote use of CFL and LED lighting – Eurolux

South Africa International benchmark2%

4%

6%

8%

10%

12%

14%

16%

3%

15%

Reserve margin for electricity

Massive ex-pansion re-quired

Older than 35 year design

life

50%

Within design life

50%

Eskom Power Stations

Prospects – South Africa

Market potential (continued)(Source: A review of SA’s electricity sector – January 2013 by Research Channel Africa)

10 year Transmission Development Plan (R180 billion) - ACCC– R150bn to expand the transmission network, over 12 700km of new lines– R12bn on refurbishing of existing infrastructure

Distribution infrastructure – Overhead Line division– Lifespan of a distribution network = 50 years (SA’s distribution network is 47 years old)– Protracted uncertainty of EDI vs REDs structure resulted in reluctance to invest in

maintenance– Current backlog = R35bn– Need to spend R6.5bn per year (double the current spend)

Electrification programme – Overhead Line and Low Voltage divisions– Budgeted spend = ±R3.5bn per annum– At current rate, will take another 20 years to achieve universal access to electricity

Europe AsiaAfrica: The Dark Continent

Prospects - SADC

Experienced management & strongly independent board

Successful in concluding value adding acquisitions

Only listed focused distributor of electrical & lighting products

Proven and robust business models across all segments

Ungeared with R153 million cash on hand (Dec 2012)

Value Proposition

For further information please visit our website:www.arbhold.co.za